Shares of The Scotts Miracle-Gro Company SMG have rallied 44.3% in the past six months compared with the industry’s 21.2% rise and the S&P 500’s 24.9% gain.
The company has a market cap of around $9 billion. Average volume of shares traded in the past three months was nearly 392.5K.
Let’s discuss the factors driving this Zacks Rank #1 (Strong Buy) stock.
Positive outlook, strong demand in the U.S. Consumer unit and bright prospects in the Hawthorne business are major factors contributing to the company’s price performance.
In July, Scotts Miracle-Gro revised its sales growth guidance for fiscal 2020.
In the U.S. Consumer unit, the company projects sales growth of 20-22% for the fiscal compared with 9-11% expected earlier. It now expects sales in the Hawthorne segment to rise 55-60% in fiscal 2020 compared with the previous guidance of 45-50%.
Based on these assumptions, Scotts Miracle-Gro now projects adjusted earnings